What’s the Magic of Recurring Revenue?

By Aarthi Rayapura • March 4, 2014

Travis Huch

VP of Solution Marketing

If you take a look at the numbers, companies with recurring revenue business models are being valued with greater multiples than their traditional counterparts. This is especially true in Software as a Service. SaaS companies are being rewarded, and enterprise players who haven’t shifted to recurring models are being punished. The market doesn’t lie: recurring revenue is a winning business model.

Behind this model, there are inherent drivers of success. If you take a look at the infographic below, you’ll start to understand the fundamental reasons why recurring revenue businesses tend be be healthier in the long run. The bottom line is, they benefit everyone – your business, the customer, technology as a whole. And when all the pieces are aligned it works well.

Take a look at the infographic below to understand the magic behind recurring revenue.